BUISENESS MANAGEMENT
BUSINESS STRUCTURE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which one of the following is not a characteristic of a sole-trader business?
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There is a single owner of the business.
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The owner has unlimited liability.
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The owner is able to keep all of the profits.
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The business has a separate legal identity.
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Explanation:
Detailed explanation-1: -In case of proprietorship, owner and business both are same as the proprietor is only the sole owner of the business. Hence separate legal entity concept does not applies in the proprietorship business.
Detailed explanation-2: -d) non-flexibility. Single proprietorship is extremely flexible in nature, since only one person owns the business and has the liability.
Detailed explanation-3: -No Liability Protection Lack of liability protection exists as one of the biggest disadvantages of operating as a sole trader.
Detailed explanation-4: -Answer and Explanation: A sole proprietorship has a single owner, but there is no limited liability. The proprietor is responsible for all the debts of the business.
There is 1 question to complete.